Authors: Alexander Bechtel, Jonas Gross, Philipp Sandner

The European Central Bank (ECB) has recently published a report on the digital euro. The report defines scenarios under which a digital euro will be introduced and specifies principles and requirements a digital euro would have to comply with. In this article, we evaluate the ECB’s report and discuss its three most important aspects that should help with the interpretation of the report.

Summary of the report

On October 2, 2020, the European Central Bank (ECB) published its long-awaited report on the digital euro, a central bank digital currency (CBDC) for the euro area. The ECB addresses the topic against the background of its mandate. Therefore, it intends to create a digital form of cash for European citizens rather than a programmable form of money for the European industry. We argue, however, that in its current form outlined in the report, the ECB’s digital euro lacks core features of physical cash such as being token-based, not remunerated, and anonymous. …

Jonas Gross

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